Montreal Real Estate: Average Salary Needed to Buy Property Rises to $110,000 in 2024

Montreal Real Estate: Average Salary Needed to Buy Property Rises to 0,000 in 2024

2024-03-20 14:34:41

A Montrealer must earn nearly $110,000 per year if they want to hope to be able to buy a property (with a 20% down payment), according to a Ratehub study.

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Thus, in February 2024, the average price of housing in the metropolis was $519,100, and you had to earn a salary of $109,400 to be able to afford it, according to Ratehub.

A month earlier, in January 2024, the average cost of a property was $509,400, or $9,700 less, and the salary to afford it had to be $108,270, or $1,130 less. The firm also notes that the mortgage rate rose from 5.71% in January to 5.63% in February.

The data released Wednesday morning is based on a mortgage with a 20% down payment, an amortization over 25 years, annual property taxes of $4,000 and monthly heating of $150.

Five other cities in Canada require a gross annual salary of between $100,000 and $200,000 to afford housing: Halifax ($111,600), Calgary ($118,300), Ottawa ($129,320), Hamilton ( $167,100) and Victoria ($169,300).

Residents in Vancouver and Toronto need to earn the most money to afford the same property, with a required income of $230,350 and $214,100, respectively.

Conversely, residents of Fredericton can become homeowners with a salary of less than $100,000 per year ($67,740), like those of Regina ($71,440), Saint John ($74,750), Winnipeg ( $77,770) and Edmonton ($83,220).

The city of Saint-Jean is also the only one of the municipalities studied where the price of properties decreased (-$200) between January and February 2024, as did the salary necessary to buy (-$1000).

“The two key variables, housing values ​​and interest rates, have moved in opposite directions since January: interest rates have fallen and housing values ​​have increased in 12 out of 13 cities. increase in housing value was sufficient for affordability to decrease in 11 out of 13 cities, despite the drop in interest rates,” summarized Philippe Simard, mortgage director in Quebec at Ratehub.

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